Preventing Foreclosures
Posted on May 15, 2008
Filed Under Mortgage Updates
We are all seeing it, feeling it and are most likely being affected by it. The foreclosure rates are skyrocketing right now, and are continuing to move up. In Colorado (my state), the problem started a good two or three years ago, with foreclosure rates up by about 50%. Now, this is beginning to resonate with the rest of the country.
So, with that said, if this is a pattern among almost half of the households, I don’t think it’s a problem of the households. Despite what some real estate agencies say…that homes are not paying and they are bad because of it… it’s really because the economy is horrible and the real estate banks that give loans are greedy. Come on… ARM rates that are at 8%? That will ‘break’ you.
It’s finally gotten so bad that there are now new systems that are coming into place. I’m certain that these will continue, with new legislation working at a national level. For those that are in a home, this is good news for you. If you have a bank that is large enough, they will be extremely flexible to prevent you from loosing your home. Just call them. For others, the most recent legislation - as of April, 2008, is from HUD with the FHA Loss Mitigation Program. These should be coming out on June 1, 2008 as a finalized statement. Basically, you can save your home no matter what your financial condition.
The reason why this is happening is because the banks are ‘finally’ starting to loose money from those who are in homes from foreclosures. The rates have gone up too far and too fast. The result? Banks can’t afford to close homes anymore in order to stay in business. So, instead they are finally working with those who are in trouble.
If you are a couple of months behind on your payments, I suggest that you start to talk to your mortgage company and bank in order to find your alternatives. As bad as the economy is becoming are more options than there have ever been in order to stay in your home.
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[...] Mortgage Updates wrote an interesting post today on Preventing ForeclosuresHere’s a quick excerptIn Colorado (my state), the problem started a good two or three years ago, with foreclosure rates up by about 50%….The foreclosure rates are skyrocketing right now, and are continuing to move up….The reason why this is happening is because the banks are ‘finally’ starting to loose money from those who are in homes from foreclosures…. [...]